stuart. all eyes and ears on bernanke. president obama touts our economy during a news conference with german chancellor. they have been back in the skies for just over a month, but the boeing 7873 minor, there is more problems there. walt mossberg is back. he says intel has not been out of the park. ♪ connell: a big day today. we have walt mossberg. it has been a while. dagen: new and improved walt mossberg. connell: we are waiting on bernanke. we begin with nicole petallides. nicole: good morning.

the dow jones industrials were down about 21 points will be kicked off this morning. they will let us know what they are thinking and following back, we will have bernanke answering questions. you can see the major averages down slightly to the downside. it used to be if the fed did this, the market would do this. because of the action and volatility that we have seen, the only thing is the market seems to move. every word means something else. if they taper, it means that the economy is getting better. connell: thank you, nicole. all eyes are on german bernanke.

dagen: peter barnes is outside of the federal reserve. peter: i am inside. to taper or not to taper. those are the questions. we hope to get some more answers from the fed chairman himself at his press conference at 230. most analysts that i have talked into do not expect any change in policy today. they expect the fed to stay the course. and, to continue the quantitative easing bond buying program at the current pace. a total of about $85 billion a month. evenly split.

however, we are looking for some clarity after hearing from the fed chairman last month before congress. the markets will be hanging on every word. >> i think the market is very fearful of the fed moving to taper its purchases very soon. i think that what the chairman will do is we emphasize flexibility, in terms of monetary policy. they still see issues with the pace of economic growth. peter: john sylvia. back is the fed ammunition to continue with the current pace of bond buying.

85 billion a month. hopefully we will get some clarity. dagen: peter barnes, thank you very much for that. peter hayes is here to weigh he is the head of blackrock municipal bonds. peter, good to see you. how long can the federal reserve sustain this level of bond buying? the market may have read too much into the statements. i do not think that the fed really knows, to be honest with you. economic data is still between one and two present. they have two targets. inflation lately has been actually coming down. i do not think that the fed

really knows. they do not really know many months out what it will be or what inflation will look like. i think that they need to talk about it. they have certainly taken some very unprecedented action here with the amount and scope of qe over the last few years. they need to begin talking about it. i think the market needs to be careful about overreacting. dagen: this bond buying will not last forever. when the fed single day, it it will be pulling back on it. will it be ugly for all classes of fixed income? >> that is a good point.

if they do not, i think it is negative for most fixed income by filtering in information over time, they give the market a little bit of time to digest and perhaps become a little less volatile. dagen: looking at every single class or category of municipal bond funds, they are all negative, year to date. how have they held up versus treasuries? certainly better than longer-term.

>> the months to come is the key question here. we are entering a time where demand is very strong. a lot of money to reinvest. supply usually dwindles. going forward, they will outpprform. over the last six weeks, they have actually underperformed. typically, when they become volatile, that is often a good entry point. dagen: state budgets look incredibly healthy. >> they do. we have nine states that are expected to actually post surpluses for this fiscal year. forty-five states have actually met or exceeded their revenue projection. dagen: we hope to see you again very soon.

connell: more broadly now on the economy. the president had a joint news conference with merkel. here is what he had to say about the u.s. recovery. >> the good news is we have seen some progress. in the united states we have fixed our banks. the source for some of these major problems. we have a much stronger banking system now with much tighter supervision. the housing market has began to recovery. we have created 7 million new jobs. dagen: here to weigh in former assistant to george w. bush. dylan. connell: are you on board for that? >> we have hardly had anything more than trend growth.

i think the fed, while they usually a are on the side of optimism, they are not above 2.5% growth either. this economy is clearly not going fast enough to create real growth in this economy. dagen: if you are working in the white house, are you somehow thankful for all of these other scandals? there is serious uncertainty out here. the fed has sort of been the -- i do not think that will continueefor too much longer. point to affect, we have some real issues. some real headwinds.

connell: i think the president may like to be boring for a little while. i think he may take conversation about the housing market slowly recovering or quickly recovering >> we would like to see some leadership, as well on the fiscal side of the ledger. should the conversation moved beyond some of these issues, that could actually help unleash businesses and help business to grow and floors. dagen: if there is one thing that forces their hand in the white house to deal with the budget deficit, it will be a federal reserve. you only need a slight uptick. everyone will be crying foul about how money is more expensive.

connell: that has been one of the big stories. what is your take? >> i think it is a little bit too soon to tell. a lot of the increased buying is driving those numbers. let's hope that the average citizen finds his or her way back into the housing market. i am not sure if we are there yet. dagen: dylan, it was good to see you. please come back very soon. the largest fully automated facility in the whole wide world. we are talking about world port. it is in louisville, kentucky. we will take you there, live. connell: to tokyo, from denver.

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dagen: stocks now. fedex delivering some solid earnings. nicole: that is right. when we look here at fedex today, we are really looking at the earnings they have delivered. they did see an improvement in both fedex express, fedex freight businesses. the overall environment, they are saying that their customers are not choosing the most expensive premium type shipping. they are using ground. they did deliver earnings with

revenues in line with expectations. modernizing their sleep. it is not the greatest, but, so far so good. connell: fedex biggest rival, of course is ups. dagen: it is world port hub. more than 2000 packages every 17 seconds. that is where adam shapiro is. hey, adam. >> good to have you here on fox business. let's walk around this beautiful 767. they are updating their aircraft fleet. that is hurting them right now. you have been in the process of updating your aircraft fleet. why would an investor want you to do this? in the long run, what does it do

for the company? >> we have the youngest fleet in the industry. even with modern aircraft, there are things that you can do that adds 3000 pounds of weight. it makes it more efficient. you will save fuel over the course of a year? >> right. we will save $6 million a year and reduce our carbon footprint. it is a win-win. >> you are telling us that you are cutting capacity in asia. has that now flattened out? >> well, things continue to be relatively slow in asia. we do not think that it will get much worse. the trend continues.

>> as ups looks at that, you continue to expand your ground fleet in china. >> right. we were made very bullish on the growth in general. the trick is to adjust your network and to build the right capacity. for example, in europe, we are seeing tremendous growth in our ground services. the volume flying airplanes is relatively slow, but the growth moving across europe are good. >> fedex was the first with overnight delivery and the airfleet. you moving to germany, they pull out of germany. that took a long time for ups to make a profit. now you are based there.

>> there are a lot of competitors in the market. we knew that europe, long-term would be a great investment. every country is a different situation. the trick is having the discipline to understand where the market is. one of the recently expanded rapidly rapidly in the last decade to create a broader set of solutions. in some markets, it is not all about small packages, it is about pallets of freight. >> any kind of advanced preview that you can give us? >> we are not updating being this late in the quarter. gdp in the u.s. continues to chug along at a positive rate. >> $54 billion company in 2012

in revenue. the fleet, by the way, we were talking about adding fees fuel efficient winglets. we have much more coming up, dagen and connell. we will continue our interview, we also have the chief information officer coming up. we also have, the ceo at 1:30 p.m. we will be live with scott davis here talking about the future of ups. we will talk about the fomc and monetary policy and how that is affecting companies like ups. dagen: thank you so much, adam. give her my best. i was on a finance battle with him some time ago. thank you so much, adam. connell: that is good timing. the tokyo bound 787 dreamliner

had to make an emergency landing in seattle. dagen: using prescription drugs properly could save our healthcare money every year. take a look at world currencies and how they are holding up against the dollar. ♪ you hurt my feelings, todd.

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♪ twenty-five minutes past the hour. president obama wants to hold talks with russia to reduce both countries cold war era nuclear arsenals. the president proposed that the u.s. and russia each cut their stockpiles by a third. that would lead each country with about 1000 warheads. afghan president is rejecting the caliban's offer for peace talks if those talks include the united states. the groups will meet tomorrow with u.s. representatives.

today, caliban militants killed four u.s. troops in a rocket fire attack at a u.s. base in afghanistan. in michigan, the fbi has ended the search for remains of jimmy hoffa. authorities began digging monday acting on a tip from a reputed mafia captain. those are your headlines. i am patty m brown. connell: thank you very much. this nightmare continuing for boeing 787 dreamliner. from denver to tokyo was diverted to seattle due to an indication of an oil filter issue. united put its 787 back in service last month. we will take a quick look at boeing shares today. the more careful about the use of medications. how about this. if doctors and patients use

prescription drugs more wisely, it could save our healthcare system at least $213 billion a year. the extra cost can be trimmed by reducing medication overuse, underuse and other flaws. the 213 billion, by the way equals about 8% of all the money that is spent on healthcare or was last year. what a game last night. miami heat beat the spurs. the spurs had it locked up, or so they thought. even had security lined up on the floor. look at ray allen. that is the shot of the year so far in the nba. one of the best three-point shooters of all time. they said they gave to ot.

they play game seven tomorrow night. daggn: people left the arena thinking that they keep tab lost and then when it tied up, they try to get back into the arena. no reentry. people were banging on the doors. dagen: if i look tired, it is because i watched that game. every minute of it. i went to bed and got up. i had to watch it. connell: you look terrific. walt mossberg is coming up next. look at him. told you. dagen: he said that intel knocked it out of the park with a new processor. he will tell you how and why. connell: the markets were down a little bit probably. here are some winners on the s&p 500 today. ♪ i want to make things more secure.

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dagen: stocks now. shares of la-z-boy are not in good shape. nicole: look at their numbers. you can see that the stock is to do a downside. year to date, it really is a great performance. right now, down about 5%. they are under some pressure. their fourth-quarter earnings fell 6.6%. they actually had a benefit in the prior year that did not come through. sales in march has improved in the latest quarter. this is for any company.

they really are trying to do incentives to keep the best players there. marketing has also been costing them some dough. connell: thank you. dagen: one of the biggest complaints from any laptop user is battery life. connell: the great wall mossberg is back with us today from washington, d.c. it is good to see you again, walt. >> i have been on the road a little. i have to say, i am a little puzzled by that la-z-boy thing. that is the best chair to watch a basketball game in.

this is some serious battery life? we should be excited about processors. >> well, it is very unusual i get excited about processors. intel and other companies have made these processors, they are not necessarily improving them in ways that make a big difference to an average user. they really optimize this around battery life. the threat from tablet to laptops has been partly because laptops have such great battery life. i was really skeptical. it turned out that they really did increase the battery life. on the map log error which i tested, the most popular in the market, my last battery life a

couple years ago was six hours and change. i got ten hours this time. it is like a 65% increase in battery life on the same test. dagen: how important is battery life when someone is buying a laptop? >> i think it is very important in perception. for this class of windows older books which are like the map took -- if you could get like i did, ten hours, that probably

normally gets over 11, that is huge. that is all day without having to worry about a place to plug it in. it makes a really big difference. connell: just the question of whether you are willing to pay for it. >> apple knocks 100 bucks off of it. it is still over $1000. the sony i looked out needs an extra battery to get that battery life. they made the thing especially light. it cost more money than the apple. you will see these trickling out into everybody's brand of laptops. i think it is one of the biggest impacts that a new intel chip has had. connell: who are you thinking for game seven? >> i am a moment of god. i think i have to pick the heat.

connell: thank you, walt. >> take care, guys. community for helping the government in cyber warfare. we will ask our friend, the judge, if he agrees. u.s. automakers are heading east. why the likes of ford are setting up shop in china. take a look at treasury markets. what the market thinks the federal reserve will do. 2.21%. ♪ [ male announcer ] the mercedes-benz

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the company says it will also develop and sell assets. the company also reporting its annual shareholder meeting to renominate its existing board. that is your latest look at business from the fox business network. giving you the power to prosper. ♪ everybody hadifferent investment objectives, ids, goals, appetite for risk. you can't say 'one size fitall'. it doesn't. that's azy. we're all totally different

ishares core. etf building blocks for your personalized portfolio. find out why 9 out of 10 large professial investors choose ishares for theirtfs. ishareby blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expens. read and consider it carefully before investing. risk iludes possible loss of principal. connell: there he is. the judge here to talk to us. this is some story. general alexander asking congress to grant legal immunity.

>> in one respect, they do not need legal immunity. they already have it. they are the custodian here. you would not have a cause of action against them because they complied with the order. he is talking about something far more secret than not. talking about when they intimidate a telecom or internet provider into coughing up information without a court order. would there be immunity? you recall when the "new york times" uncovered nsa spying in the united states in 2005. it sat on it for a year before they revealed it. that was not done pursuant to

fisa. it was pursuant to the administration intimidating. dagen: are also related to cyber and basically hacking where the government would get at these service advisors to slow web traffic. >> good question. i understand it. if the government asks the service provider to do something unlawful, not pursuant to a court order -- >> they could not get sued by another party. the lawsuit would not prevail.

do you think that the congress, in this environment, in this atmosphere will grant these telecoms immunity? i do not think so. connell: to other agencies or law enforcement agencies have the authority to grant this without having court orders? >> congress could say to a witness, tell us what you know and we will give you a immunity. that basically bars it. connell: this is different? >> yes, this is different. this is basically saying that the court should not have jurisdiction to hear a lawsuit based on this. this basically would allow the internet service providers to harm someone with impunity. that would deny that person access to the courts.

dagen: this is relating to fighting cyber crime by the governmmnt. connell: thank you, judge. a quarter till the hour. we have another addition of stocks now. mark newton is with us. very quiet, not a big surprise ahead of the fed decision. the narrowest trading range we have seen in one day of trading in ten months. that will show you we are in wait and see mode. that will change. >> i think you are absolutely right. a lot will be talked about

today. investors are anxious based on what happened last month. we need to distinguish between tapering and tightening. bernanke, right now, talking about his departure. it will be really important to convey a really clear, precise method. a lot of disagreement. it will really be important today that we stress what data we are watching that may cause inflation. nobody is willing to take a position on ahead of this. that could change after we hear a little bit more clarity. thank you. >> my pleasure. dagen: bernanke takes center stage in just about -- at about 2:30 p.m. this afternoon. connell: jeff flock is in the

pits down at the cme. jeff: this is where they make bets on futures. this is the euro dollar. we have the fed funds futures contracts. i have eric wilkinson with me. long-time trader over here. how many years? >> about 15 years. jeff: you got out. it is hard when the fed does not move. >> when the rates are flat, the only thing you can really do to make money is sell these spreads. jeff: we go all the way out to january 28, 2015 before you get

more than a 50% chance of a rate hike. >> absolutely. the market should be right around 99, 99.75. right now we are at 99.98. that is our front month. that means ten basis points. jeff: what were the volumes likely we had an active interest rate. the volumes are up a little bit because of the talk of a move. >> we were elbow to elbow in here. it would be crazy in here. we would probably be the loudest. on the floor right now. jeff: 100,000 contracts a day. >> easily. jeff: volume right now? it is probably less than 10,000.

that is going out two years. back in the day, we would not trade more than a year out. jeff: interesting. you heard what it used to be like back in the day. we still have room in the pit. if it gets crazy, you never know. it could be all back. if we started getting some fed talk or some, you know, some talk about this evening off of the policy, we would definitely see people coming back. jeff: for right now, you are trading corn. the wolfman is back. thank you. connell: jeff flock, thank you. dagen: ford opening a plant. not here, in china. jo ling kent has that coming up. connell: let's get back to the markets here.

let's look at some of the winners we are seeing over at the nasdaq. ♪

connell: some car talk now with you for ford. dagen: jo ling kent is in our newsroom with more. >> good morning. starting work on a new cadillac factory in shanghai. 40% of luxury vehicles worldwide will be sold in china by the end of this decade.

they hope to triple cadillac sales in china to 100,000 units by 2015. if you are trying to sell expensive cars, china is the place to do it. cadillac is aiming at beijing and central and southern sections of china. we are talking the growing upper-middle-class. ford whose focus model is really popular in china right now. they plan to double their engine production capacity to meet rapidly growing demand for its brand. 1.2 million vehicles by 2014. if that is successful, this would be the fastest expansion anywhere in 500years. chinese roads continue to be dominated by volkswagens. foreign brands are dominating 40% of the car market. very big place.

connell: thank you. interesting story. dagen: a sad story to pass along. a frequent guest, best-selling author has died, according to his publisher. he self published his first book before landing a publishing deal. he has been on with i miss a number of times. they were very very popular. vince was a very nice man. best wishes to his family today. he announced back in 2011 that he had prostate cancer. dagen: pray for his family. dennis and cheryl next hour with the moves you need to make right now. connell: president obama is over in germany today.

he had a meeting with germany's president. guests coming up on markets now talking about granting immunity to companies that cooperate with the nsa. stay with us. markets now continues. ♪ friday night, buddy.

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♪ >> i'm dennis kneale. cheryl: i'm cheryl casone. dow down ten points now, but we have fed jitters out there. two-minus two hours and counting until we find out if they signal the beginning of the end of the stimulus program. could be a changer. more coverage coming up. dennis: president obama defends nsa snooping meeting with germany's president not keen on it. we have a guest ahead op granting immunity to the tech companyings that cooperate with the nsa. cheryl: betting op the

children's television market. dreamworks stock higher as they are a big player in kid vid. dennis: it is almost the top of the hour, ahead of schedule and ahead of the fed. stocks every 15 minutes kicking off coverage, phil flynn in the trading pits, and first, nicole? >> what's interesting is the volatility or lack thereof here today is everybody is in a wait and see mode, dennis and cheryl. the dow jones industrials now down 16 points, but what's been ever present since march 22 when we started to hear -- sorry, may 22 when ben bernanke eluded to the fact that it could be in the future, there's wild volatility, which was the norm over the last several trading days. you see we have had three of the last four days gaining over a hundred points, and the one that's not there was also a hundred points to the downside,

but every single day since may 22, has been 1 # 00 point swings or more unlike today. the question is what happens in the # 2 p.m. hour? when i talk with traders, they are baffled because this is a time when you talk about what the fed may say, will they taper the bond buying? what will they say? no one gauges which way markets reagent to this. this is a wild card. that's the latest here on the floor, down 16 points now on dow. phil, what's going op in chicago? >> tell you what, nicole, every since the fed talked about tapering down, fed funds futures taper up. in fact, a couple weeks ago before the big taper, you look at fed bond futures, the best chance increasing interest rates was way back in 2015, not so anymore. right now, fed fund futures say the best stock is a rate increase is actually november of 2014 after the october meeting, so that's going to be the tray

that everybody's going to be looking at, that november-20 december 2014 number after what the fed says, the rest of the futures, obviously, leaning up, and rates rising since the fed tapered, and that may be a reason they back audiotape the taper, they don't want the rates up too quickly putting rain on the fed today. dennis: oil too, a nine-month high yesterday, time for a breather? >> you know, i think so, but it's up to the fed, dennis. let me tell you something, no reason fundamentally, the oil supplies that came out, for oil to be at the levels other than the possibility that the fed is going to keep the food on the accelerator. you can talk about geopolitical risk, you can talk about syria, but we are swimming in oil right now. the only way we're going to get above that $100 a barrel a season event that could be today with the fed meeting. >> all right, thank you very much. >> thank you. >> cheryl: stock volatility is

much a -- ado about nothing. stimulus is going to stay in play as long as ben bernanke or his successor is around. why do you say that? >> sthart with the fact that ben bernanke has a lot of academic research out there criticizing the japanese for removing stimulus too early. that's a case he's probably not going to remove it early, plus, there's no inflation, none at all, and, finally, the economy is not growing fast enough. we see the fed not beginning a taper. cheryl: that moves into the next thing i want to cover with you, some of the picks you brought on to the show and how they perform now because these names, moe of them, anyway, stat with the good stuff, most road the wave on the positive side. start here with intel, march 20th, up 20% since you picked it. here's a one-year, but i want to show the viewers a three-month chart, the performance they would have had under you and the

picks. >> thank you. it's a nice chart, and they are doing what we thought, which is use their marketing and technology prowess to get into tablets and smart phone, back down here, they said they're not in smart phones and tablets, it's a dinosaur just with pcs is, but they made the move. >> interesting. that's where the stock over the last three months, interesting. something else year, united continental, you've been a friend of the show for six years, but you picked this september 2 #, 20 # 11, and it's gained 68% since you picked it back in september of 2011. which everybody hated in the airline industry. >> yeah, this is not for the faint of heart, and i'm glad it worked out because clients would have hung me if it didn't work out. the basic thesis is up like decades past with no money, there's a crop of managers who figured out how to make it profitable. they are doing what they hate,

charging you for pillows. we love it as stockholders. cheryl: the ceo of the airplane has been responsible. citii group, 2012, up 34%, let's give a shot for citigroup. >> you are find to me. >> just wait, nice now, give me another minute. >> they back off over the last year and a half, an obvious reaction to treasury rates going higher, hurting the spread, the book of business with the inventory they hold, but they are well below book value whether you measure on gap or tangible books. they still have to get back to value. cheryl: a little bit of a pull back right here. >> should get back to 60, could do it by the end of the year,

50-60. >> another good pick, july 17th, 2012, a year ago, there we go, the one-year chart. this is the gain they would have been 24%. >> i don't want to surprise you. thank you for that, but i have to point we no longer own them. they hit the price at 34, if they came back to high 20s, we'd buy it again, but that was the 27-34 price range what we wanted to buy and sell this. it's a great company, just pricey here. cheryl: $34 #. all right. i promised viewers this. i have to get to it, look at caterpillar. this is not a good story for you, picked it february 2012, lost 26% over the year. what now? >> yeah, this is a burr in my saddle holding longer than i wanted to, but we'll continue to hold it and let the global economy recover. cheryl: okay. we'll see what happens next time

on the show. cliff natural resources, another down 7 # 1 #% since you picked it. sorry. >> i may have talked about it earlier, but just initiated the position. watch it, coming back to it, and beat me up later on because there's room to grow. cheryl: okay, james, always a pleasure, more good picks than bad we have to say on this one. >> thank you very much. ♪ den depp in the u.s., we're told not to worry, the feds spy only on foreigners, but in germany today, president obama tried to reassure foreign allies on the role of massive data snooping and thwarting terrorist attacks. >> we know of at least 50 threats that have been averted because of this information, not just in the united states, but in some cases threats here in germany. we do have to strike a balance. we do have to be cautious about

how our governments operate with intelligence. >> the president welcomes the debate on the topic, but so far, he's leaving that to the deputies. the nsa expected to publish details on the 50 would-be attacks that the spy program supposedly prevented today. is the prism program in the spotlight, the agency's chief, general keith alexander, trying to push a controversial measure on capitol hill calling on lawmakers to provide legal immunity for the tech companies that help the government fight cyber attackers. joining us from washington to discuss the developments, we got global security attorney brian finch. thank you for being with us, brian. is this really to give immunity to tech companies that helped fight crime or immunity to companies who help its government satisfy on the own people? >> communities to help fight cybercrime and attacks.

what the general is talking about is broader than government contractors, basically for anybody who takes defensive measures in order to protect their company and stockholders' interest. that's what he is pushing for. dennis: why do i need special legal immunity against counterattacking hackers? it's not like the illegal hackers bring charges against me in court. >> well, what we're talking about here is civil immunity, dennis, not criminal immunity. the lawsuits that erupt after massive attacks that disresults or destroys operations or results in pretty significant theft of intellectual property. that's what we have to worry about. companies are worried about liability in those cases because there's so many threats and so many security solution choices that they are going to be engaged in expensive and protracktive litigation after, and you did the wrong thing, picked the wrong technology, but if there's a liability, civil liability protection to them, it's helpful.

den deny -- dennis: is this going to be immunity for a facebook in turning over my personal private files to government when they ask for it? >> no, that's two things here. we're talking about immunity used to defend the company against an attack in order to protect them and help ensure these attacks don't occur. there's another debate going on about sharing this kind of information and private information, personally identifiable types of things. that's a separate debate. here, it's the basic blocking and tackling, putting in systems, ect.. dennis: government, again, late to the party? it's arguing that it's now illegal for a company to counter attack hackers, yet we have cyber consultants on this show helping corporate clients go out to attack hackers and preemptively before they have been attacked. >> right.

well, what we are talking about is not the government late to the party, and, in fact, it's industry being late and not recognizing there's been a law op the books for the last 11 years called the safety act that provides liability protections for companies that do anything to detour, defend against, respond to, or mitigate an attack, including cyber attacks. it's not going to help the offensive, again, an entirely separate debate, currently illegal under the law. if you want to debate that, that's fine, but what i'm talking about here or talking about is being incredibly important for companies is for them to have confidence when they buy a antimalware system or firewall system if they pick a system that's reviewed and approved by the u.s. government, they face limited damages or no liability for doing so. dennis: isn't this going in the3 wrong direction? rather than granting immunity, what if we started charging companies for liability for break-ins and they would do a better job of stopping hacking? >> that's the problem.

liability can be extraordinarily expensive and protracted. the companies don't know what to do, and they are almost helpless saying let's sue all the time. if we do that, companies are going to walk away from the market. they will turn around and start suing the cybersecurity vendors, and companies walk from the markets. it's a perverse incentive to enforce and look to litigation and liability litigation because if you do that, then you're going to -- you're going to wind up in a system where companies are only willing to take extreme risks, and they will go forward and offer services and leave ourself defenseless. dennis: in that case, only lawyers win. thank you for being with us today. >> thank you, dennis. cheryl: it's happened yet again. a dreamliner making an emergency landing in seattle calling into question the violate of the aircraft and also the stock. dennis: let me argue that does not call into question the viability of the aircraft at all. anyway, an adam io --

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cheryl: we are silting in this tight trading range today. we're at 15300, the high 15319 for the dow, a mix, but it goes back to jitters about the fed and will they or went they, ect., ect., and we'll finds out in an hour and a half from now what the statement will be and if they change the language. we'll have activity at that point hopefully. hp leads the dow and verizon and at&t are dragging the dow down as we speak, but let's bring in somebody else that knows more than i do about it. nicole on the floor of the new york stock exchange. hello. >> not necessarily, we are a great team. we are down 18 points, watching fedex, of course, with their quarterly numbers, and you see the stock now is up, about 3%, the fourth quarter earnings did top expectations, revenue in line, but what's interesting,

though, is what they are seeing to the customers, and the customers are cutting back, not choosing the premiums, shipping, and instead, they are choosing the lower costs,o, what they are seeing abroad, that was weakness there. it was sort of a mixed bag for fedex. it wassnot all -- it was not all great news for fedex overall, but the sock is reacting nicely because they beat a need when you look at the bottom line. back to you. cheryl: absolutely. dennis: thanks, nicole. the biggest rival, ups, at he top spot as the world's largest package delivery company, and we are live all day with adam at the ups international air hub in louisville, kentucky where the company handles 2,000 packages over 17 seconds. adam? >> when you think about it, 4 billion packages a year, but i want to bring back curt, the company's cfo. we had a discussion in the last hour about innovation and

stainability, but now i want to get to what investors want to talk about, which is the stock at ups. the company was public back in 1999, the largest ipo, and you were vice president of investor relations at the time, largest of the 20th century going forward. this is a company that has historically been owned, the managers, the drivers, and you started as one in 1997. owned shares. how do you protect the value of the stock going forward from wall street which likes immediate results because you don't get that in this industry. >> right, right, and, no, we pride ourselves at ups to be a company that plans for the long term and makes investments that do not show immediate benefit, and we think over the long term, do that consistently, investors recognize that. becoming a public company was a big transformation for us, but we still believe it's a good thing for managers of the company to have a position in the stock and we encourage managers to hold that. wall street is impatient, and

that's the balancing acts to keep long term focus we had as private companies, but at the same time, to be responsive to market changes and wall street does a good job of keeping us up to date. dennis: in july, there's questions about analysts from the slow down in asia, the fact you are expanding on the ground in asia, and you might ask why are you spending that money now? shouldn't that be saved for the future or as you said, returned to shareholders. >> right. no, the way to create value for company is redistribute the cash to share owners that you don't need for growth, but continue to invest for growth. you know, it took us over a decade to really get established in europe, but once we did in the mid-90s, it's been a great story. we'll make keep itch vestments in asia and china is a hot market. we'll make investments if there's a sense of a long term payout, and we have to be willing to change and adopt because the world is rapidly changing. >> and we were talking before we

started the interview that ups is not always the first to do something, and, in fact, you are slow to get into the game. the airline, 8th largest in the world, didn't come about until the late 80s. how do you say to an investor that we need to do it that way? >> yeah, the trick is to know when to move quickly. if technology changes, then you may have to move very quickly, but other issues, it's best sometimes to see how the market reacts to issues to make sure there's a good long term plan and execute. the race is not always to the swift. it's to those that know the course and prepare and can ultimately add the most value. >> all right, curt, the fact you guys paid diff depped for 40 years that's stable or increased speaks volumes to people who understand that sometimes slow and steady wins the race. back to new york, but i want to let you know, coming up at 1:30, we have an exclusive on fox business with the ceo, scott davis, from ups, talking about the future of the company. people have questions about the

succession plans and the contracts voted on now. we are going to talk about that as well as the federal rereceiver and its decisions and quantitative easing and impact on ups at 1:30. dennis: thank you very much. we'll see what ups says at 1:30 today. cheryl: american icon, american economy. i love watching ups. great interview. student loan rates set to double next month unless you are a federal or congressional employee. we'll explain what that means to the american taxpayer. dennis: gold prices in a official correction territory, down 20%, but we have a gold bug ahead who says get in now. ♪

>> at 25 minutes past the hour, i'm patty ann brown with the fox news minutement speaking in berlin, president obama propose the u.s. and russia cut cold era nuclear weapon stock by a third. any u.s. proposal to reduce nuclear arsenals cannot be taken seriously while the united states is building up missile defense capabilities. afghan president karzai is rejecting the taliban's offer for peace talks if the talk abouts include the united states. a taliban spokesman confirmedded the group eets tomorrow with

u.s. representatives in qatar. today, taliban militants killed four u.s. troops in a u.s. base in afghanistan. in florida, potential jurors heard a judge read the second degree murder charge against george zimmerman. zimmerman is pleading not guilty claiming self-defense in the shooting death last year of trayvon martin. those are the headlines, dennis, back to you. dennis: thank you very much. gold futures fighting for gains and still struggling for a comeback, down 27% from that all-time high. i think not even all-time high, but the high of recent 2011, and this while minting american gold eagle coins on the rise, up 115% january to may versus a year ago. the largest seller of precious metals, the real thing, saying physical gold is the way to go long term. joining us now, and every time i think about buying gold,@ physical stuff or etf, yet i see

another ad to buy it, it goes down in price. why is this now the bottom? >> i don't know if it's the bottom or the top, but the issue that americans are finding out is that balance in the portfolio is really important, that gold being a noncorrelated asset to stocks and bonds, if they go up, great, insurance policy, it's not worth as much, but if they go down, sure am glad it went the other way. dennis: a lot of precious metals, this is a hundred ounces of silver. >> yes. dennis: and this baby, can you zoom in? how much is it worth? >> $1400. dennis: i'd rather have a cheaper version of a rolex. when you buy gold, is it a bet on economic crisis? >> it's, i think there's several things involved in that, and we've got people who buy for the short term, maybe that's better to use to build etf, but long term, three, fiving ten years, there's an issue with purchasing power, and therefore owning the physical gold gives you options that you just can't quite get in

the paper form of that. that's what people say around the world, and, in fact, if you look at the data, according to the world gold council, look at data from the time that etfs form until now, there's $84 bbllion in assets in ten years, and the same period of time, they bought gold 270 billion more than 3-to-1, so people are voting with their money. dennis: right, when i buy say $14,000 worth of gold, ten of these babies right here, do i keep that hidden in the living room for when the apocalypse comes or keep at your company? >> you have title, you don't want us to keep it. there's various ways to store it, and we have aces access to this on ebay. it's unprecedented this a company like ebay officers this in realtime prices on the website so there's a trusted source of a place to go to buy

it so they know they get it. that's the partnership that we have. dennis: my late grandfather was a gold bug, bought gold in the incredible 1990s bull market, not a rich man at all. i have another friend with gold and bought $350,000 worth of it, you know, ten years ago, and it's worth over a million dollars in a safe deposit box. let's say a nuclear dirty bomb goes off, and how do you get to the gold when there's crisis everywhere? i mean, why own physical gold? why not just paper? >> if you have that situation, the paper is not going to be worth anything because nobody gets to that. it's in the vaults under the streets of london. a lot of the buyers prefer to have this physically. they keep it in a home vault or safe deposit box or some other place to get to it easily, and it is not necessarily a disaster asset, but inflation protection, purchasing power protection, and so many customers say it's real money. this has been around since the roman empire. it's. here since the --

dennis: you can't buy anything with it. >> have you tried? dennis: no. thank you for being with us, nice job. >> thank you. cheryl: two days away from the launch of the new series of the fox business summer time show down, eight stock pickers, two every friday go head to head in the month long competition. we kick it you have with chad morganlander versus oliver porsche, the financial services president, and they are form midble opponents. check this out. oliver recommended pepsico back in december, up 20%, and chad recommended cisco in march, now up almost 20% as well. if you listen to them on our show, invest in the companies, you would be sitting pretty now. in the end, who comes out on top? tune in right here friday, noon eastern time on fox business. dennis: denver to tokyo, 787 dreamliner forced to make app

emergency landing in seattle. the fallout for the stock just ahead. cheryl: the tail of the taper. our fed panel ahead as the fomc is 90 minutes away from releasing the policy statement and right after that, ben bernanke takes questions from the press. dennis: today's s&p's winners and losers in the meantime. ♪ ♪ this man is about to be the millionth customer. woulyou mind if i go aheadf yo inead we had someone go ahead of him and win fiy thousand dollars. congratulations you are our one millionth customer. nobody likes to miss out. that's why ally treats all their customers the same. whether you're the first or the millionth.

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dennis: 90 minutes away from ben bernanke and company releasing the latest announcement on the economy. handicap it ahead with the fed panel. a dreamliner nightmare, denver to tokyo 787 forced to land in seattle. we look at the fallout for the stock. and we got stocks now, nicole is

on the floor of the new york stock exchange, and boeing is lower, nicole? >> that's right. what happened with the boeing, obviously, with this boeing plane, was they left from denver hoping to go to tokyo, but had to make an emergency landing in seattle. they didn't make it out of the country. here's a look at the stock right now, down 1.1%. the dream liner 787 dream liner, a potential oilroblem, forced to land in seattle. this happened yesterday. the flight number 139, landed without incident. they had to reaccommodate the customers, but the 787 dreamliner, of course, is boeing's first predominantly carbon fiber aircraft, so we waited over three years for this one, and now just another little problem, not as dramatic as what we had seen, you know, they took it off, worked on the batteries, put it back. back to you. cheryl: when you have an oil problem, you cut down the end gin, you comply, but do you want to? probably not.

>> not all the way to tokyo. cheryl: especially not to tokyo. nicole, thank you very much. well, t-minus and counting just 90 minutes away from the fed's latest policy statement. there is a treasure-trove of mixed opinion as so when the fed scales back the bond buying program, and the federal reserve economist, kevin hasset, senior economist, jeff, both here, kevin, stating with you. okay, we had fed officials at 10-20 billion taken off the table, what do you think? >> i think between now and the end of the year that will happen, but what i expect today is that the fed is doveish andd3 back off speculation about tapering. you know, it started back on may 22 back at the hearing of the joint economic committee where kevin brady of texas got ben bernanke in the cross hairs saying things he didn't intend to say speaking markets. ic -- i think they try to restore markets today with doveish

language. cheryl: looking at the economist you know well, and they called this a g0 world. very critical of not just the fed's policies, but the negative effects on china's economy, for example, there was another meltdown coming in europe, so they are very negative about the overall economic picture for the world. do you agree with that assessment? >> well, what i would say is from app investor perspective, we don't think qe is boosting the real economy, but it is having effects on capital flows inside and outside the u.s.. imagine the fed as the world's biggest bond portfolios with 4 trillion in securities, that displaces investors meaning they have to go elsewhere to find securities. they go into other sectors of the credit markets, and then op a global basis. the fed's policies, whether we like it or not, are having ramifications globally. >> they are. talk to me about the statement

because we'll get the statement first. there could be potentially a language changed, do you think we're going to get it? if so, do you think it's about housing, employment, where do you think they could change the language today? >> right. well, what everybody's looking at is what are they going to say about up employment because what ben bernanke has said is that the tapering might begin if they are confident there's a sustained and sustained is the important word, reduction in unemployment. i don't think they are going anywhere near that today, but that's what everybody is looking for. cheryl: jeff, same question to you. >> i think they are going -- the real wild card, cheryl, is inflation. do they mention the recent disinflation trent seen across the world, but especially in inflation gauges. do they view that as temporary aberration, if you will, or something more worrisome, and the statements post meeting. cheryl: i have to ask the next

question. kevin, any hints about ben bernanke's future as fed chairman? we heard the president what made what seemed like a freudian slip that he was on the job longer than meant to ormented to. whawng think happens? >> he said he was not going to the jackson hole meeting this summer suggesting he was gone by the end of the summer. i think nobody expects him to be reappointed. done by the end of this year. the only question is is he going sooner than that? my guess is that he probably is going to stick around towards end of the year to start the tapering himself rather than leave that to the next person. cheryl: fair enough, but we could bring in janet, odds on favorite, and, yes, we heard tim geithner and larry summers thrown about, but at the same time, really, he could do that and have her return the party, if you will. >> i think the key innovation is running the show.e person

there's a frame work in place. there's a broad consensus on the policies that are being implemented, and that will exist whether he stays or whether he goes. that's the most important thing relative to the previous chairman, mr. greenspan. cheryl: yeah, well, the potential names are greenspan to issa, if you will. we have 90 minutes to go. gentlemen, thank you. >> thank you. dennis: dreamworks' shares head higher, that's ahead, and big bets on kid v iring'sdvid. cheryl: something you thought you'd never hear. a heat wave in alaska. details in the west coast minute. take aing -- take a look at the ten year treasury as we go to break. ♪ my mantr

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the national highway administration estimates repairs cost $76 billion. a report from the transportation for america says 260 million trips are made each day over structurally deficient bridges. on "money" at 5 p.m. eastern, ben of ben and jerry. that's the latest from the fox business network giving you the power to prosper. for his small business take theseags to room 12 please. [ garth ] bjors small busiss earns double miles on every purchase every day. produce delivery. [ bjorn ] just put it on my spark card. [ rth why settle for less? ahh, o [ garth ] great businesses deserve limited reward here your wake up call. [ male announcer ] get the spark business card from capital one and earn unlimited rewds. choose double miles or 2% cash back on every purchase every day. what's in your wallet? [ crows ] now where's the snooze button?

cheryl: time for the west coast minute, in arizona, a 5,000 acre blaze blamed on human action under control in the forest. firefighters report it's 0% contained forcing hundreds from their homes. press cot, a hundred miles northwest of phoenix is a popular summer destination for tourist. the blaze is troubling for residents there. pwc, just released the real estate investor survey, and here as a guest yesterday as you may remember, and for the first

timing looks like seattle is the new hot place for investors. according to the survey, office space, a landlord's market finding high-tech continues to kill job growth and need for office space there. 13 office buildings sold for $661 # million just since january 11st. finally, you never think you're going to hear the phrase "alaska heat wave," but it's happening now, temperatures 80 degrees in anchorage and higher in other parts of the state. they advise residents to use sunscreen, which is rare. most do not have air-conditioning. they are trying to get them to be safe and care. temperatures breaking records in place since 1926. that is your west coast minute. dennis: greenies will have a field day with that, cheryl. building a plant in china, and jo has more. >> dennis, ford, today, opened a

500 million dollar plant in china, southwestern china, because sales numbers are shoots through the roof. in may, ford grew 45% in china year on year trying to capitalize on that growth. they are going to double its engine production capacity to meet the growing demand aiming to make 1.2 million vehicles by 2015. if they are successful, this will be the fastest expansion anywhere in half a century. gm has another strategy, but similarly aggressive. theeceo broke ground on a new factory for cadillac in shanghai this week estimating 40% of vehicles globally will be sold in china by the end of the decade. they hope to triple sales in china to a hundred thousands units by 2015 trying to grab 10% of the welcomes ri car market by 2020. dennis, if you sell expensive cars, china is the place to do it aiming at the usual big

cities, but cadillac is focusing on third tier cities that you never heard it, over that's the place where the luxury market is a blank slate to take off right now. it certainly helps foreign brands continue to dominate 70% of the car market in china. dennis? dennis: wow, 40% of luxury cars sold in china by the end of the decade. that's a startling stat. thank you. >> thank you. cheryl::investors wait on the fed now, and with us is execution partners, and from the low of 15273 to 15319, we had this narrow range today, mark. what do you think of it? >> absolutely right, cheryl. it's the tightest range seen in ten months, and investors are reluctant to take on a position ahead of ben bernanke's decision. that's often common ahead of big decisions like this today, but, you know, still a lot of questions as to whether they announce that this tapering, it's important to convey it's

not necessarily going to lead to a rise in interest rates or hike rates because they taper, and that's important. they have to give some clarification of the data they are looking at that might cause them to taper, but just because ben bernanke leaves at the end of the year that tapering is more likely at all. if anything, they are his policies, important to see a sign of economic growth and up employment come down to under 7.5% before this is over. cheryl: the reason i brought up the trading range today because it's the tightest range in ten months with volatility. you can't be shocked by that because it's summer, but at the same time, mark, i mean, the volatility is disconcerning for those that believe that we're in a stock bubble right now, that this is not real. >> well, potentially, that's true. you obviously have seen deterioration in the emerging markets, but the u.s. has not participated in that regard. the trend here positive, a nice bounce, and yesterday's close the highest close in the month of june for u.s. indexes. the time being, no worry whatsoever of any sort of

deterioration from a technical standpoint, particularly, in the economic data that's been slowly meandering along. there's not going to be any certain change in fed policy from what they say, but, really, it's the clarification of this tapering is what investors want to hear at this point. cheryl: we'll see what they say. we are close now, an hour and ten minutes away. thank you, mark. >> my pleasure. dennis: dreamworks hitting a new 52-week high setting sights on small screen and small viewers. details ahead in the media minute. cheryl: that's funny. taking care of their own, why government workers and congressional staffers may be protected from coming student loan rate hikes. nice. take a look at the winners over on the nasdaq. we'll be right back. ♪ we went out and asked people a simple question:

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dennis: today's media minute with jeffrey, the ceo of dreamworks animation telling wall street analysts late yesterday that dreamworks is the next power player in kids' an animation, and shares poppedded up 4%, now up 3% on that after rising 8% in three days. studio's tv revenue at 100 million this year, and 13% of the total saying that will double to 200 million by 2015. that surge includes some 1200 new tv episodes in five years. spinoffs on shrek and mad

madagascar. they are buying 300 hours or a fourth of that. game seven, last night's rivetting come from behind win by the miami heat, morphing the spurs into game seven of the nba playoffs for only the fourth time in 25 years. the ratings on disney's abc gainedded game by game. game one 14.1, and game two, 14.6, and game five, 15 million fans watching, last night 16.1, and thursday's night will do better, i bet you. cheryl: yeah. dennis: ozzy and black sabbath have their first number one album ever, 43 years after their first record, album 13 out this week selling 155,000 copies rising on the billboard with a bullet. cheryl: rock is back. dennis: he never left. cheryl: can you believe the

miami heat -- that they are still in it? dennis: of course, now they will win. cheryl: they were knocked out. dennis: testosterone in their favor now. cheryl: i don't know. here's outrage for you. while congress may let student loan interest rates double next month, it turns out that some congressional staffers and federal workers will likely be protected from the impact. it's all compliments of you, a taxpayer funded benefit providing more than 20 million last year for them to pay down college debate. usa today shows the house spent $15 million last year to pay down staffers' student loans and senate spent $6 million. how do you feel about that? dennis: really nice of the fed. really nice. cheryl: just a fun bowl of happiness. i love paying taxes. yeah. big brown, ups, ii today's american icon, and adam, look at the live pictures, i mean, it's

just fun to hang out under the plane, it is. adam's at the international hub of ups in kentucky coming up. dennis: the economic bell weather's future. ♪

lori: is very good afternoon, everybody. i am lori rothman. no 100-point swing for the dow today. a constant pattern. that could change. the federal reserve statement is just an hour from now. >> we are live at ups. we will have an interview at 130

with the ceo. he will join us live. outlook on the boat regarding the teamsters new contract. these are key issues. how will they continue to be successful? a global slowdown. china slowing down. federal express cutting capacity. where do we stand for ups? what does this mean for investors? do they still feel that stock will fall below $86 a share? i have the opportunity to actually fly one of their 757 flight simulators. glad to say, everyone survived that